Raise minimum wage, says LPC

The national minimum wage (NMW) should be increased by 3% in October 2015, according to the Low Pay Commission (LPC).

This would mean that the minimum rate for workers aged 21 and over would move from £6.50 to £6.70 if the government accepts the LPC's recommendations.

The LPC also recommends implementing the following rate raises from October 2015:

3.3% for 18-20 year-olds, to £5.30 an hour

2.2% for 16-17 year-olds, to £3.87 an hour

2.6% for apprentices, to £2.80 an hour

a 27 pence increase in the accommodation offset to £5.35.

David Norgrove, chair of the LPC, said:

"We judge that the improved economic and labour market conditions mean once again that employers will be able to respond in a way that supports employment.

"However, our recommendation this year is predicated on a forecast which foresees lower costs for business in fuel and energy, a strong economic performance, significant recovery in earnings across the economy and rising productivity. If these expectations are not borne out over the year we will take this into account when considering next year's recommendation."